Tax Credits and Deductions for Seniors

Senior Man Filing Tax Report

10 Ways Older Adults Can Reduce Tax Bills Starting at Age 50 Everyone wants to keep more of their hard-earned money. Luckily for seniors, many of whom are on a fixed income, there are several ways for them to save on taxes. With one out of three seniors aged 70-79 having saved less than $100,000 for retirement1, every deduction counts.  A good way to make sure you aren't missing out on deductions is to get professional guidance. There are free tax preparation services available to seniors through the IRS and AARP. Also, those with income under $69,000 per year can

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Tax Benefits of Caregiving of Aging Relative

Tax Benefits of Caregiving of Aging Relative

Caring for an elderly relative can be rewarding, but incredibly difficult – as well as expensive. However, it may be possible to recoup some of the costs through income tax savings. Tax Benefits of Caregiving of Aging Relative There are three general approaches to tax savings on elder care costs – declaring your elderly relative as a dependent to receive an exemption, taking medical deductions that can be itemized, and claiming a dependent care credit that can be subtracted directly from the taxes you owe. First, you must determine if your elderly relative qualifies as a dependent. Full details are listed in

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IRS Tips for End of Year Giving

Individuals and businesses making contributions to charity should keep in mind several important tax law provisions that have taken effect in recent years. Some of these changes include the following: IRS Tips for End of Year Giving Special Tax-Free Charitable Distributions for Certain IRA Owners This provision, currently scheduled to expire at the end of 2013, offers older owners of individual retirement arrangements (IRAs) a different way to give to charity. An IRA owner, age 70½ or over, can directly transfer tax-free up to $100,000 per year to an eligible charity. This option, first available in 2006, can be used for

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Five Tips to Increase Your Federal Refund

Five Tips to Increase Your Federal Refund

Five Tips to Increase Your Federal Refund Dozens of new tax laws could impact your 2009 federal taxes. Experts recommend taking extra time and care with this year’s return so you don’t miss out on any tax breaks.   TaxACT suggests these five easy ways to maximize your federal refund: Get organized. Gather your tax documents and organize by category. Locate records related to events including unemployment, college, new vehicles, having or adopting children, buying a house, moving and changing jobs. New tax laws may give you bigger breaks for those events. Contribute to your traditional IRA. If you were

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